Council approves creation of Inspector General office in wake of investigation into potential fraud in county contracts

July 7, 2026

The King County Council on Tuesday approved legislation that will establish a new Inspector General Division within the Office of Public Complaints.

“This new accountability function is a critical step in strengthening our oversight of county-funded programs.” said King County Councilmember Rod Dembowski, who introduced the legislation. “While rare, any waste, fraud or abuse of taxpayer funds is unacceptable. We must work to prevent it, and when it occurs, hold people accountable.”

Co-sponsored by Councilmembers Reagan Dunn, Sarah Perry, Pete von Reichbauer, Steffanie Fain and Rhonda Lewis, the legislation builds on last year’s King County Council vote approving a comprehensive reform package to overhaul oversight of taxpayer-funded grants within DCHS. That action followed an audit and an ongoing investigation by the Office of the Ombuds, which identified widespread oversight failures and potential fraud in county contracts. The approved legislation also advances recommendations from a 2025 joint report by the King County Auditor and Ombuds, which identified significant gaps in financial oversight and reporting systems. The legislation follows recent efforts by Council to enhance oversight and accountability of county-funded programs including the establishment of a new internal audit function within the Executive’s Office, added funding for the county ethics program, and new budget restrictions on certain DCHS grant programming.

“The threat of fraud and waste is not imaginary, and taxpayers deserve to know their hard-earned dollars are protected from it,” Dunn said. “This Inspector General Division finally gives the County teeth to conduct rigorous oversight, pursue independent investigations, uncover improper conduct, and ensure meaningful repercussions.”

The Inspector General Division will investigate reports of financial fraud and abuse, with the authority to issue subpoenas and pursue recovery of misspent funds. The division will be led by an Inspector General Director appointed to a five-year term and supported by dedicated staff, including investigators and administrative personnel.

“By design of the three branches of government – Executive, Legislative and Judicial – it is the responsibility of the Legislative Branch to provide a check and balance to the Executive Branch,” Perry said. “The Inspector General Division does exactly that. This is a significant step toward ensuring that King County does everything in its power to establish and maintain fiscal structures and practices that make us the best in the nation in financial management.”

To ensure transparency and accountability, the Inspector General Division will be required to issue written findings and recommendations when fraud, waste, or abuse is identified, and to submit an annual report to the County Council and Executive. County agencies would also be required to report suspected misconduct through established channels.

“Strong oversight isn't just about investigating fraud, waste, and abuse after they occur. It's about helping prevent problems before they happen,” Fain said. “This legislation builds on reforms already underway by providing clearer expectations, additional training for employees, and accessible reporting processes when concerns arise. It also requires an implementation plan so the Inspector General's Office launches with the procedures and operational framework needed to protect taxpayer dollars and earn the public's trust.” 

The approved ordinance also establishes a centralized King County Fraud Hotline, overseen by the Inspector General Division, creating a single point of access for reporting suspected fraud and improper conduct. The legislation also updates county policies by clearly defining fraud, waste, and abuse, requiring standardized inspection language in county contracts and grants, and aligning King County practices with those used by federal Offices of Inspector General and other jurisdictions nationwide.

“It's our duty to ensure that oversight mechanisms are robust and that taxpayer dollars are used effectively and responsibly,” said Councilmember Jorge Barón. “Today's legislation furthers those goals and demonstrates the strong support from this Council for transparency and accountability across your regional government.”

The Inspector General Division will work collaboratively with the County Auditor and Ombuds, whose roles remain distinct, focusing on performance oversight and administrative misconduct, respectively.

Funding for creation of the new division was included in a supplemental budget approved by Council two weeks ago.